CBZ Holdings will not shore up its shareholding in First Mutual Holdings Limited (FMHL) through buying out minorities after the competition regulator blocked the deal saying it had only approved the acquisition of a 31,22% stake.
In September 2023, CBZ Holdings concluded a 31,22% purchase in FMHL shares from the latter’s former majority shareholder, the National Social Security Authority, which had a 65,53% stake.
The acquisition of these shares in FMHL took CBZ Holdings’ total stake in the firm to 36,22%, as it already had an existing 5% shareholding in the former.
As per Zimbabwe Stock Exchange listing rules, the financial services group made a mandatory offer to buy out the remaining shareholders of FMHL. According to the bourse, firms are required to make such an offer if their shareholding reaches 35%.
In a statement yesterday, CBZ Holdings said it “will no longer be proceeding with the mandatory offer to the minority shareholders in First Mutual Holdings Limited.”
“Shareholders are advised that the Competition and Tariff Commission (CTC) made its final decision on November 29 2024 on CBZ Holdings application for the approval of the acquisition of additional shareholding in FMHL through a mandatory offer.
“The CTC has resolved that CBZ Holdings Limited must maintain a 31,22% shareholding in FMHL, which was initially approved by the commission,” CBZ said.
CBZ Holdings chief executive officer Lawrence Nyazema in August told our sister paper, The Standard, that the group would use FMHL to make regional forays.
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He sad the group was seeking regional expansion by leveraging FMHL’s existing footprint in the region.
The acquisition of additional shares in FMHL would have allowed CBZ Holdings to enter the region with a stronger balance sheet.
As of September 30 2024, CBZ Holdings had total assets worth ZiG30,05 billion, translating to US$1,2 billion.
